Lenovo To Start Domestic Manufacturing From Chennai Plant Along With Motorola; Another #MakeInIndia Win
After Xiaomi started their manufacturing unit in Andhra Pradesh, it is Lenovo’s turn to be enchanted by PM Modi’s ‘Make in India’ vision. As per reports coming in, they have commissioned Flex to manufacture smartphones at their Sriperumbudur factory near Chennai.
The news has been confirmed by Amar Babu, chairman of Lenovo India.
Flex is a contract manufacturer of electronics goods, and at this location, they have dedicated 1500 employees for Lenovo. As per Amar Babu, the factory would be able to produce 60 lakh units in a year, and there would be separate production lines for Motorola and Lenovo brands.
There is no export activity here as the production would be domestically consumed. He added, “Output from the plants is focused mainly on serving the Indian market,”
Lenovo has become the largest Chinese smartphone company to start manufacturing in India. We had earlier reported that Lenovo may get into smartphones manufacturing very soon; considering that they already have a PC unit at Puducherry.
Incidentally, Huawei, another Chinese MNC, will start their ‘Make in India’ inspired manufacturing at the same Sriperumbudur factory. The electronic products from this factory will also sell domestically.
Make in India Vision: Connecting Dots
It is indeed remarkable how Make in India vision is inspiring and giving birth to new business alliances. For instance, ever since Google sold Motorola to Lenovo for $2.9 billion, there had been no initiative from Lenovo to consolidate production of these two different brands, and take the handset venture further.
However, after their decision to start manufacturing at Chennai, it would be for the first time that both Lenovo and Motorola brands would be manufactured from the same factory. Currently, production for Motorola E has already started, and thus, it would be competing against Xiaomi, Redmi 2 Prime under ‘Make in India’ handsets niche.
Lately, the government has been proactive, and prompt in issuing security clearances for manufacturing units; especially for China based firms. As per a report, Modi Govt. has given security clearances to 18 Chinese companies ever since it came to power. Opposition has been largely observed in power sector, where some industry experts have objected to certain security clearances.
Here is a recap of all major Make in India initiatives till date
- Samsung to invest upto $1 billion in Uttar Pradesh; Sony will start manufacturing as well
- Ford will open Rs 6000 crore factory in India
- Foxconn, SoftBank and Bharti to invest $20 billion in Solar Energy
- Foxconn will create 10 lakh jobs in India and manufacture iPhone
- LG announced Rs 1000 crore investment for domestic manufacturing
- Hero Group to manufacture electronics products in India
- Microsoft and Motorola will start local manufacturing
- Gionee will kickstart local manufacturing of their phones
- Lenovo will manufacture smartphones in India
- Airtel will make Make in India set-top boxes
- Japan to establish 11 industrial townships & double their investment
- Rs 4.5 Lakh Crore investments pledged during Digital India week
- Lava to invest Rs 2615 crore in India
- Foxconn commits investment of Rs 31000 crore in Maharashtra
- Phicomm to invest Rs 6300 crore in India